USD and GBP Sentiment Turns Bearish After Disappointing US Pending Home Sales Data

One Million Trade - 2024-02-29 15:00:00

Currency sentiment: USD - Bearish, GBP - Bearish

Reference time frame: Short-term

The recently released data on Pending Home Sales in the US for January showed a significant decline of -4.9%, falling short of both the previous data of 5.7% and the forecasted data of 1.4%. This unexpected drop in home sales indicates a weakening housing market, which could have negative implications for the overall US economy. A slowdown in the housing sector could lead to reduced consumer spending, lower construction activity, and potential job losses in related industries.

As a result of this data, the US dollar (USD) sentiment is likely to turn bearish in the short term. Investors may start to move away from the USD as concerns about the health of the economy grow. Additionally, the British pound (GBP) sentiment is also expected to be bearish as any weakness in the US economy could have spillover effects on the global economy, including the UK.

In conclusion, the disappointing Pending Home Sales data in the US is a cause for concern and could lead to a shift in sentiment towards the USD and GBP in the short term. Traders and investors should closely monitor further economic indicators to gauge the extent of the impact on these currencies.